Journal Shaded cells have feed PAGE 1 JOURNAL Score: 68/75 ACCOUNTING EQUATION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUIT 1,402,444.00 97,556.00 1 1,500,000.00 1 Instructions How does grading work? Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. Interest on the bonds is payable semiannually on December 31 and June 30 The fiscal year of the company is the calendar year. DATE DESCRIPTION 1 Required: Dec 31' Interest Expense 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1.* 2 Premium on Bonds Payable 2. Journalize the entries to record the following:* 3 Cash a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the straight- Jun. 30 Cash line method. (Round to the nearest dollar.) 5 b. The interest payment on June 30, 2012, and the amortization of the bond premium, using the straight-line method. (Round to Premium on Bonds Payable the nearest dollar.) 6 Bonds Payable 3. Determine the total interest expense for 20Y1. 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest? 5. Compute the price of $31,951, 110 received for the bonds by using the present value tables. (Round to the nearest dollar.) *Refer to the Chart of Accounts for exact wording of account titles. How does grading work? 31,951,110.00 1 30,000,000.00 1 1,951,110.00 1 Points 12.69/1 PAGE 1 JOURNAL Score: 20/37 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUIT Cash 31,951,110.00 1 2 Bonds Payable 30,000,000.00 1 3 Premium on Bonds Payable 1,951,110.00 1